RUS Publishes Interim Rules for Rural Broadband Access Loans and Loan Guarantees

The Rural Utilities Service, an agency delivering the United States Department of Agriculture’s (USDA’s) Rural Development Utilities Programs is amending its regulation for the Rural Broadband Access Loan and Loan Guarantee Program (Broadband Loan Program).

Since the Broadband Loan Program’s inception in 2002, the Agency has faced and continues to face significant challenges in delivering the program due to the following factors: The competitive nature of the broadband market in certain geographic areas; the significant number of companies proposing to offer broadband service that are start-up organizations with limited resources; continually evolving technology; and economic factors such as the higher cost of serving rural communities. In addition, the Office of Inspector General, in a 2005 report, made recommendations to improve program efficiency. For these reasons and in an effort to improve program operation, the Agency published proposed changes to the program’s regulation in the Federal Register on May 11, 2007. While the Agency was reviewing public comments and revising the rule, the Food, Conservation, and Energy Act of 2008 (2008 Farm Bill) was enacted and changed the statute under which the program operates. In accordance with the statute and taking into account the public comments received regarding the proposed rule to the extent possible, this interim rule presents the regulations that will govern the program until a final rule is published. The Agency is seeking comments regarding this interim rule to guide its efforts in drafting the final rule for the Broadband Loan Program.

This rule is effective on March 14, 2011. Comments must be submitted on or before May 13, 2011.